Australia Plans Guidance on Compliance With Software-Tax Ruling

Australian authorities are developing guidance on their compliance approach regarding taxation of companies’ payments for software, an issue that has spurred pushback from the US Treasury Department and business groups.

The draft practical compliance guidance is aimed at helping taxpayers understand where the Australian Taxation Office is likely to apply compliance resources in the area, the ATO said Monday.

The guidance will lay out the application of a January draft ruling in which Australian authorities detailed when they will treat companies’ payments to bring software into Australia as royalties subject to withholding taxes.

The US Treasury and business ...